Smoothing Effect Of Cash Holdings On Innovation In High-tech Firms

Innovation is the inexhaustible driving force for the development of the country,and a source of power to promote national progress.In recent years,China's economic development has entered a new normal state.In order to improve the comprehensive national strength and develop our economy well and quickly,to occupy a relatively dominant position in the competition of the international market,our country is vigorously advocating technological innovation.With the proposal of "mass innovation and entrepreneurship",the role of innovation activities in economic development has attracted much attention.As an active participant in the market economy,the innovation activities of enterprises play a decisive role.The level of innovation in industrial enterprises directly reflects the overall level of technological innovation in China's market,which has far-reaching significance.Under the above background,this paper focuses on the mechanism of the high-tech enterprises in the industrial enterprise database using internal cash to smooth innovative investment and further explores the regulation mechanism of credit discrimination on the enterprise internal cash smooth innovation investment,and explores The effect of the smoothness of the cash discrimination regulation by the competition level of the banking industry..Based on the high-tech enterprise smoothing effect of cash holdings on innovation,this paper study the influencing factors of the smoothness of innovation investment held by cash from the perspective of credit discrimination and banking competition.On the basis of theoretical analysis,an innovative investment smoothing model based on Euler equations is constructed.The empirical part uses System GMM(System GMM)estimation method to test theoretical hypotheses.The main conclusion of this paper is as follows:(1)Compared with other financing methods,high-tech enterprises will use cash holdings to smooth innovation investment;(2)Enterprises with credit discrimination are more inclined to smooth innovation investment by holding cash,that is,the effect of private enterprises is more obvious than that of state-owned enterprises with cash smoothing and innovation.Small scale enterprises are more effective than large-scale enterprises with cash smoothing and innovative investment;(3)The bank competition,through the financing effect of competition,will alleviate the smoothing effect of cash holding,which is more obvious in the credit discriminated firms...